S.B. 208 Summary

• Enacts the Unclaimed Life Insurance Benefits Act requiring life insurers to compare in-force policies, contracts, and retained asset accounts against the Social Security Administration's death master file at least semi-annually to identify deceased insureds.

• Mandates insurers complete a good faith effort within 90 days of a death master file match to confirm death, determine if benefits are due, and locate beneficiaries using documented procedures that account for name variations and incomplete information.

• Prohibits insurers and service providers from charging beneficiaries or authorized representatives any fees or costs associated with death master file searches or verification.

• Requires insurers to notify the director of finance upon expiration of the statutory escheat period if beneficiaries cannot be found, with unclaimed benefits escheating to the State under chapter 523A.

• Allows the insurance commissioner discretionary authority to limit, exempt, or phase-in compliance requirements based on demonstrated hardship, with violations constituting a business practice violation under section 480-2 but creating no private cause of action; effective January 1, 2018.